Plant Health Care PLC
16 November 2004
For immediate release: 16 November 2004
Plant Health Care plc
Trading Update
Plant Health Care plc ('PHC' or the 'Company'), the leading supplier of natural
products for plants and soil, provides an update on current trading. PHC stated
at the time of the interim results announcement on 27 September 2004 that whilst
it had experienced difficult trading conditions in the first half the Directors
anticipated an improved performance in the second half of this financial year
ending 31 December 2004. However, this upturn in revenues has not occurred to
the extent the Directors expected. Nevertheless, sales for the second half of
the year are expected to be approximately equal to sales for the first half of
the year, (which is a significant increase over 2003) with a substantial
decrease in the operating loss.
The trading conditions in the US have been negatively affected by the well
publicised recent hurricanes in Florida, one of the Company's key horticultural
markets. Large planting projects have been eliminated or delayed, affecting
demand for PHC's products. The poor weather has also impacted on the annual
programme of golf course maintenance, which the Company had believed would be an
important element of its fourth quarter revenues.
Elsewhere, as previously announced, one of the Company's largest US
distributors, Simplot, unexpectedly announced the disposal of its operations
east of the Rocky Mountains. PHC is making progress and continues to work with a
number of other distributors to replace this lost revenue. However, it will not
be until 2005 that this revenue is fully replaced.
Following the previously announced loss of a large government joint venture in
Mexico which impacted negatively on earnings in the region during the first half
of the year, PHC has experienced a marked improvement in the second half
although annual sales for PHC Mexico will remain slightly below 2003 levels.
PHC Reclamation continued to generate revenue from the Carissa Mine contract in
Wyoming. However, contracts that were underway or pending at the time of the
interim results have not come to fruition as the Company hoped.
In its European operations PHC saw a 26 per cent. increase in sales in the first
half of 2004 as demand for its Liquid Organic Plant Food increased. This trend
has continued in the second half.
Notwithstanding the events referred to above, the Directors expect US sales for
2004 to exceed those achieved in 2003. In addition, the Directors are confident
that the adverse impact caused by the hurricanes in 2004 will be reversed in
2005 as damage repair, replanting and resumption of horticultural projects are
implemented.
PHC Pennsylvania has moved its 2005 Distributor Early Order Program to the
fourth quarter of 2004. This will increase sales during the current year and
bring its practices in line with those common in the industry. The recent
expansion of the sales force is starting to show positive results and the
Directors believe this will continue through the coming months and lead to
increased sales in 2005.
Since listing on the AIM market in July of this year PHC has made a number of
significant developments. PHC has acquired VAMTech, a business which it is
confident will significantly enhance its sales into the agriculture industry
during 2005. In October PHC announced an exclusive long-term agreement for
consumer product development and commercialisation with The Scotts Company, the
world's leading supplier and marketer of branded consumer products for lawn and
garden care. This agreement validates the Company's products and its position as
a market leader in the produce of 'green' plant care products.
Whilst the Directors are confident that the 2004 results will be ahead of 2003,
the very difficult trading conditions outlined above will cause the results to
be substantially below market expectations. The underlying trends for the
business remain strong and coupled with the added strength in the commercial
offering with the Scotts contract and VAMTech business the directors expect
growth to continue in the coming months and into the future.
For further information please contact:
Plant Health Care plc Tavistock Communications
John Brady, CEO Jeremy Carey/Katy Pratt
Tel: 001 603 525 3702 Tel: 020 7920 3150
Steve Whitcomb Email: kpratt@tavistock.co.uk
Tel: 001 412 826 5488
Notes to Editors
About PHC
Plant Health Care plc ('PHC') is a leading provider of natural products for
plants and soil. Established in 1995 in Pittsburgh (Pennsylvania) in the United
States, PHC currently has approximately 60 employees and has operations in the
US, Mexico, UK and the Netherlands with technical support in Austria. The Group
has two principal operating subsidiaries in the US - PHC Inc (PA) and PHC
Reclamation. The Company listed on the AIM market of the London Stock Exchange
in July 2004.
PHC's products are aimed at the horticulture, agriculture, turf grass,
commercial landscaping, forestry and land reclamation industries and are both
environmentally beneficial and on the whole more cost effective than synthetic
chemical alternatives. Through the commercialisation of these products, PHC is
capitalising on current long-term trends toward natural systems and biological
products for plant care and soil and water management uses.
PHC Reclamation is an environmental and reclamation engineering consulting firm
providing cost effective, biologically based solutions for the reclamation and
restoration of lands disturbed by mining, construction and other activities. PHC
Reclamation was established in 1997 to exploit PHC's products and technology.
This information is provided by RNS
The company news service from the London Stock Exchange
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